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Harvard Study Says Weak Copyright Benefits Society

An anonymous reader writes "Michael Geist summarizes an important new study on file sharing from economists Felix Oberholzer-Gee and Koleman Strumpf. The Harvard Business School working paper finds that given the increase in artistic production along with the greater public access conclude that 'weaker copyright protection, it seems, has benefited society.' The authors point out that file sharing may not result in reduced incentives to create if the willingness to pay for 'complements' such as concerts or author speaking tours increases."

23 of 326 comments (clear)

  1. Pointless by Razalhague · · Score: 5, Insightful

    These kind of studies are largely pointless. We already know this, and the media industry will not believe it regardless of how many studies come to this conclusion.

    1. Re:Pointless by Rogerborg · · Score: 5, Insightful

      the media industry will not believe it

      Indeed, since the media "industry" - the guys that buy the lawyers and Senators - have no interest in "creating" anything. Their job is to exploit other peoples' creations. Whether the creators get rewarded or not is utterly irrelevant to them.

      --
      If you were blocking sigs, you wouldn't have to read this.
    2. Re:Pointless by Opportunist · · Score: 5, Funny

      Really? And here I was under the impression that "politics" stems from "poly" meaning many, and "ticks" meaning "little blood sucking pests".

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    3. Re:Pointless by erroneus · · Score: 4, Insightful

      The media industry DOES believe it. In fact they have known it for a long time. This is easily demonstrable in that people listen to their radios and then turn around and go to concerts and other things. Radio play does not necessarily equate to CD sales unless the buyer is more or less a fan. On the radio the music is already effectively free. (Yes I know it is paid for by advertising and that the radio stations pay the music publishers for the right to play. But to the listener, it's free.)

      The music publishers only have music to publish. That's what they sell. They don't do concerts. They might have the rights to sell t-shirts and other things as well, but their primary income is selling music. If the study says free music is better for society, they already know that. If the study says free music is better for artists, they already know that. The study effectively says that the music publishers are bad for society and are holding everyone back with their business model. Do you expect them to care? I don't.

      This study is for legislators to listen to, not "the enemy."

    4. Re:Pointless by T+Murphy · · Score: 4, Informative

      Citation goes to Mark Twain I believe.

    5. Re:Pointless by cpt+kangarooski · · Score: 4, Interesting

      Actually, no we don't know this, but, most importantly, it does not matter. This misses the point. The copyrights ought to exist, because the creators of things, that are hard to create but easy to replicate -- like software, literature, music, video, fashion design, what have you -- ought to enjoy to lesser control of their creations, than creators of things tangible.

      Didn't you read the last post I made responding to you? Fashion design is not copyrightable, at least in the United States, and never has been, so why do you keep bringing it up, and perhaps pretending that it is? It's very odd. And it's certainly an unusual example to bring up in any case, since most people wouldn't think of it as a creative work, particularly around here.

      Anyway, assuming you misspoke when you said that "creators ... ought to enjoy lesser control," you're wrong. This has nothing to do with fairness. The world, it is well known, is not fair. And while it might be a good idea to make it more fair, surely we must prioritize our efforts such that we make things more fair for the most people before moving on to increased fairness for smaller groups, all the while not making things less fair for anyone, nor reducing the amount of increased fairness we've already brought about. Well, there are more readers of books than there are authors of books. So not only do the readers have more power in a democratic society, but making things fair for them surely must take precedence, if fairness is truly your goal, as opposed to, say, pandering to special interests while disguising yourself in noble-sounding lies about fairness.

      The world seems to be made in such a way that things that are hard to create, but easy to copy are, well, easy to copy. If I come up with a good story which entertains and enlightens people who hear it, then surely it would be most fair to those who have not yet heard it if they could hear it from more than one person. After all, even if I went on the speaking tour from hell, and printed a lot of books, and distributed them all over, I'm sure to miss some people who cannot take the time to see me, cannot afford to buy a book, can't read, don't know the language I work in, etc. Letting others fill in the gaps that I, a mere one person cannot possibly fill myself, is a better method than letting them go unenlightened and unentertained. Copyright would prohibit this.

      A lack of copyright, OTOH, certainly wouldn't prohibit me still going on tour and selling books, it would merely mean I'd face more competition. Since copyright didn't exist anywhere until the 18th century, and didn't exist most places until well into the 19th and 20th centuries, yet world literature got along okay, and has likely benefited more from things like improved printing technology, increased literacy, increased leisure time, improved methods of transporting books, etc. than it has from mere copyright, we can be pretty confident that the lack of copyright would not be a big deal.

      Of course, it's not fairness, per se, that copyright is interested in. The goal of copyright is to promote the progress of science (i.e. knowledge) by encouraging the creation and publication of more original and derivative creative works, and having those works be as minimally copyrighted in both scope and duration as possible in the process, and fully in the public domain as rapidly as possible, since it is only then that the people of the world can take advantage of the easy-to-copy nature of the world that you have noticed, and help themselves the most. Since there are more of them than there are of authors, this is appropriate. Since it aids authors as well (e.g. Disney making films based upon public domain fairy tales), it's even more appropriate.

      This derives not from it being economically beneficial (which it may or may not be), but from simple fairness. A book-writer ought to be no less protected from thieves, than a shoemaker...

      An author and a cordwainer are pretty much protected the same. A tangib

      --
      -- This and all my posts are in the public domain. I am a lawyer. I am not your lawyer, and this is not legal advice.
  2. So what? by MrEricSir · · Score: 5, Insightful

    The media industry is not society. Why would they care if society benefits if their bottom line does not also benefit?

    --
    There's no -1 for "I don't get it."
    1. Re:So what? by Joce640k · · Score: 5, Interesting

      But ... their bottom line *could* benefit if they add value to the physical items they sell (eg. if their CD comes with an official t-shirt, sew-on patch, etc).

      --
      No sig today...
    2. Re:So what? by Opportunist · · Score: 5, Interesting

      You know, that's something I just simply don't understand: Why don't they bundle some crap with the CDs? Cheap trinkets that cost close to zero but make the fans happy?

      You needn't go fancy. How about the "official, signed photograph"? Of course the signature is printed, but who cares? You can ONLY get it with THIS CD! (sure, others may exist, but THIS very special autograph picture is only available that way)

      It's not like this would break the bank. But then again, they don't even include booklets anymore in CDs, why would I assume they could spend half a buck for a cheap crappy picture print?

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    3. Re:So what? by Daengbo · · Score: 5, Insightful

      I read the first ten or so pages of the PDF before posting, and the intended audience was obviously not the media companies. I would guess that that audience would be law makers. The paper clearly states that social welfare for artists is not the intended consequence of copyrights, but that encouraging production is.

      I found most of the arguments in the front section (which were probably more general and less supported than ones later in the paper) to be logical and well-reasoned, except for the part about authors generating income through speaking tours, which I doubt would be effective for any but the most famous.

      I'll definitely read the rest of the paper this weekend.

    4. Re:So what? by Joce640k · · Score: 4, Insightful

      Whatever the reason ... the games industry is MAKING MONEY. So is the DVD industry, the movie industry, the cellphone/ringtone industry, etc., etc..

      The RIAA isn't making money because it's stuck in a rut with a 1990's business model. A big reason that people pirate music is because the RIAA isn't giving them what they want and the P2P networks are. What most people want is that song they heard on the radio in a format that works on their MP3 player (and no trip to the shops to get it). Apple is doing Ok with their iTunes store because they're doing this (though it's still a bit heavy handed with the DRM - I want files I can put on a USB stick and plug it into my car/HiFI).

      The CD sales model? Not so much. The only people I know who still buy CDs are the ones who aren't handy with a PC. This is doomed business model. Period.

      I don't care if the RIAA dies but I do care about all the laws they're buying that are rushed and later get misused (eg. DMCA).

      --
      No sig today...
  3. in today's America by joeyspqr · · Score: 4, Insightful

    laws are not passed to benefit society, laws are bought to protect business models.

    --
    +1 fashionably cynical
    1. Re:in today's America by jedidiah · · Score: 4, Insightful

      Lets see...

            70 year copyright terms that continue to be perpetually extended.
            150K per song statutory damages for individuals.
            Tools that allow you to put your own DVD on your own iPod are illegal.

      --
      A Pirate and a Puritan look the same on a balance sheet.
  4. Other studies tell the same story by Boetsj · · Score: 5, Informative

    A similar study has been conducted before in the Netherlands: Downloading benefits the Dutch economy (in Dutch, Google Translation). This study had been ordered by the department of Education, Culture and Science, the department of Economic Affairs and the Justice department.

    A downloaded movie, CD or game is not equal to a product not sold, say the researchers. Also, "Amongst downloaders of music and film, the percentage of buyers is as high as with non-downloaders, in games, the percentage of buyers even higher. Music downloaders are also more likely to concerts and buy more merchandise. Downloaders buy more games than gamers who never downloaded and movies downloaders buy more DVDs than non-downloaders."

  5. Re:Err.. by Daimanta · · Score: 5, Insightful

    The same question would be: What if you are a painter and you paint only for a niche of the market? You make less money. But if you love the art, that's where your hart lies and that's what will make you happy.

    Sure, you can go commercial and make more money, but that would probably negatively affect your happiness so you will have to choose and possible compromise.

    --
    Knowledge is power. Knowledge shared is power lost.
  6. Re:Err.. by richie2000 · · Score: 4, Insightful

    They can still do that.

    I swear to God, sometimes it's like people equate "loss of some monopoly privileges" with "absolutely forbidden to sell a disc ever again".

    Yes, some people will download instead of buying the CD or paying for it on iTunes. Others will find the artist through file-sharing sites and buy something to either support the artist, own the physical CD or just to feel good inside. On the whole, these effects evens out pretty well, except for the minority of really big artists who lose a bit of income and the majority of really small artists who gain from being more exposed. This is, generally speaking, a good thing since the incomes in the copyright industry is very uneven compared to other industries.

    --
    Money for nothing, pix for free
  7. copyrights were meant to be weak by Anonymous Coward · · Score: 5, Insightful

    Copyright was invented to allow creators to get an income from their creations before the creations are released to the public domain. The state should have stood firm in keeping the copyright protection short. However they didn't, but instead succumbed to the "industry" interests. This resulted to turning every creation in a cash-cow with no expiry date, which obviously hinders innovation and creation: there is little incentive to create a second good work since the first one you created will provide you and your descendants with a steady flow of cash for the next 200 years.

    I understand that the above is a bit simplified because it omits the role of the "industry" in the flow of cash. The "industry" pimps will absorb much of the cash intended for the creator (after all, they forced him to sell them for pennies the copyright of his work). This will keep the creator going because he doesn't really earn that much to retire. But it will also degrade his output because he knows that even if he does really-really good with his next creation, it is the "industry" pimps that will get the most out of his work.

    Still quite simplified, but I think you get my point: You can't grant quasi-perpetual copyright protection (google "The Mickey Mouse Protection Act") and still expect the same amount of innovative creations.

  8. Re:Different views on "society" by siddesu · · Score: 5, Insightful

    Nope, it is not a differing view on "society", but rather a differing view on "good".

    For the society outside of the corporations, "good" is, generally, more creativity, i.e. less copyright. Less copyright means less monopoly, and less monopoly provides generally a better allocation of the resources of society. Of course, it'll make those lawyers, who want to succeed in the creative business work harder, but ain't that the American way anyway? Incidentally, this freedom may make people who invest in art more focused on the art itself as opposed to taking the easy way out -- owning copyrights and doing a failed remake after remake.

    For the corporations, "good" is exactly the opposite. A corporation doesn't give a damn about what is good for society, as long as it benefits the corporate bottom line. Monopoly is the best way to insure a bottom line, especially in the view of the corporate owners (see, e.g. concepts like "economic moat"). So, a corporation will allocate resources not for new art, but for protection of lucrative copyrights, and for politics. Neither of which is good for art, or society.

    If you take a look, you'll see that's exactly what's been happening in the decades since the ifpies and the wipos of the world came about.

  9. Re:Err.. by Yvanhoe · · Score: 4, Insightful

    What the hell does it have to do with anything? I'm talking about artists getting a cut of the money on albums they sell. If the market will buy, it means you created value, value which you should get.

    But if the market won't buy, what does it mean ? That you didn't create value or that someone steals from you ?

    Bullshit. If you knew anything about classical music...

    I'm talking about the 1900' before the record industry went up. But yes if we go further back in time, we find composers (not musicians, musicians just had a regular salary when part of an orchestra or were itinerant artists if not) that are paid for commissioned work. A model that worked well enough to provide us with Mozart's and Bach's music. Why could this model not be used today ? Instead of some rich aristocrat, you would have donation from thousands or millions of people asking for new songs, et voila...

    --
    The Wise adapts himself to the world. The Fool adapts the world to himself. Therefore, all progress depends on the Fool.
  10. Get a job. by remmelt · · Score: 5, Insightful

    Get a job like the rest of us? You can't just label yourself an artist and go around whining about loss of income if you don't want to go the extra mile. I'm terribly sorry for people's overly romantic view of stardom, but it just sucks, especially if you're not a star (yet).

    By the way, pretty much any artist has a side job. In my experience, the more serious the job is, the less serious the artist is about being an artist and vice versa. There is only a very limited subset of artists that can make a living from their art.

  11. Not causation - AGAIN! by EEDAm · · Score: 4, Insightful

    It is truly crippling to see the mental fails that keep being propogated by the press and even supposedly academia here. "Piracy (filesharing) was the driving force behind increased creative output". It's simply not true that one caused the other. There isn't an artist or an amorphous group of artists who are outputting more per artist because they are thinking ex-ante "shit I'm going to get paid less than I used to so I better produce more". That might work for widgets and industry but for artistic output? Total rubbish. I'm not entering into the debate about the pros and cons of filesharing by the way but this sort of causative fail is just depressing and so utterly prevalent.

  12. Re:Flawed logic by Jesus_666 · · Score: 4, Insightful

    No, they need to be paid in a different way. Selling copies of something that can be copied at zero cost is not a maintainable business because everyone can make those copies. You can't magically make that go away.

    So the artists need to find a way to get paid in some other way. Most smaller bands don't make any appreciable money fom record sales anyway (if they even produce recordings of their shows) but work on a per-gig basis: You hire them, they play at your venue. So bigger bands have to do this as well, only they call it a tour. Or you produce stuff of intrinsic value and sell that - for example by bundling your CDs with something physical your fans are going to like. Or even auctioning off the gold master of your studio album if you're big enough. Or just by selling your music on vinyl.

    The problem bands face is that the current distribution model has become obsolete. Extending copyright is not going to change that, especially as the labels now have the copyright for longer than the artist lives, so they'll keep profiting off his work when he won't be able to benefit from that profit (leaving aside that the artist only sees a small fraction of what the label makes).

    --
    USE HOT GRITS WITH STATUE OF NATALIE PORTMAN (NAKED AND PETRIFIED)
  13. Re:Err.. by AtomicJake · · Score: 4, Informative

    [...], Picasso all died more or less penniless,

    How wrong! Picasso was probably one of the commercially most successful artists. His fortune has been estimated at $50m.